The team behind Everlend, a blockchain-based lending protocol based in Solana, has announced the closure of the project. “It was a very difficult decision, it took us a month to consider all options to move forward,” the developers said.
They cited a shrinking borrowing/lending market and a lack of liquidity. The platform went into payout-only mode. The team noted that there was no shortage of funding, but considered continuing to work under the current circumstances “a gamble”.
The developers will leave the project’s code base open for anyone to use.
“We believe in the future of DeFi at Solana and will continue to innovate and contribute to the ecosystem in any way we can,” Everlend emphasized.
In early November 2022, the TVL protocol collapsed from levels above $300,000 to levels near $100,000.
This happened against the backdrop of the FTX collapse, which resulted in the closure of one of the leading decentralized exchanges on Solana – Serum. The site was an important liquidity provider for blockchain projects.
At the end of January, DeFi digital asset management platform Friktion from the Solana ecosystem announced that it had stopped serving users.
The developers of the Mango Markets protocol, on the other hand, said they were ready to relaunch it. The Solana-powered project became insolvent after an unauthorized withdrawal of $116 million in assets in October 2022.
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